THE pound has risen against the euro this morning, extending its gains from yesterday’s uptick in retail sales figures and being bolstered by a drop in the US dollar.

Despite the US dollar giving way to the pound, the Euro is resisting further advances

GBP/EUR is currently at around €1.123, up 0.25 per cent from this morning’s starting levels.

The pound is climbing this morning thanks to last night’s dip in the US dollar following reports that Trump’s campaign team had been subpoenaed as part of Special Counsel Robert Mueller’s investigation into possible collusion with the Russian state.

The Wall Street Journal report weighed heavily on the US dollar as markets fear that this will force the Trump administration to focus its energy on rebuffing these claims, rather than implementing some of the President’s long awaited tax reforms.

Along with the Japanese yen, the pound appeared to be one of the main benefactors of the sell-off this morning, with investors likely looking to take advantage of Sterling’s recent weakness.

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There are suggestions that the Eurozone will continue this sustained growth

The euro area is in the midst of a solid economic expansion

Mario Draghi

However, the euro is resisting any further Sterling advances this morning thanks to some positive remarks from European Central Bank (ECB) President Mario Draghi in a speech in Frankfurt at the European Banking Congress this morning.

Mr Draghi opened his speech by saying: “The euro area is in the midst of a solid economic expansion.

“GDP has risen for 18 straight quarters, with the latest data and surveys pointing to unabated growth momentum in the period ahead.”

“From the ECB’s perspective, we have increasing confidence that the recovery is robust and that this momentum will continue going forward.”

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Suggestions that Eurozone growth may continue at its current pace over the coming months will be welcomed by investors amid hopes that it will reduce the need for the ECB to extend its bond buying programme past September next year.

Looking ahead, the GBP/EUR exchange rate may struggle to reach the highs seen back in September over the coming weeks as investors become increasingly wary of the pound.

This is both in part to growing uncertainty over Brexit negotiations and that any positive UK data in the near future is likely to be undermined slightly by the Bank of England’s (BoE) reluctance to tighten monetary policy further.

Simultaneously, the euro may continue to strengthen if Eurozone data keeps impressing, with next Wednesday’s consumer confidence data expected to show an uptick in household sentiment across the bloc in November.